South Africa Considers Relaxing Ownership Regulations to Activate Starlink Service
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Starlink, Elon Musk's satellite internet service, is edging closer to official operation in South Africa, following the government's proposal to ease Black Economic Empowerment (BEE) requirements [1][4]. This move could pave the way for Starlink to enter the market without the need for traditional ownership stakes to be given to historically disadvantaged South African groups, a barrier that has been a point of contention.
The proposed change would allow companies to meet empowerment targets through "equity-equivalent" investments instead of direct ownership. This workaround is seen as a significant step towards resolving one of the main policy obstacles delaying Starlink's launch in South Africa. However, it's important to note that Starlink has yet to formally apply for a telecoms license in the country [1].
The demand for Starlink's high-speed internet services in South Africa remains strong, despite the lack of official approval. Informal access routes have been in use for years, with South Africans obtaining equipment and subscriptions through neighbouring countries [1][3][5]. Despite this unofficial usage, the South African communications regulator, ICASA, has warned that the use of imported Starlink dishes without a local license is illegal [1].
The path forward for Starlink's operation in South Africa is not without challenges. Political opposition from parties like the EFF threatens legal action if empowerment laws are undermined [1]. Additionally, scientific concerns from astronomers about radio-frequency interference with the SKA-Mid telescope push for strict licensing conditions [1].
President Cyril Ramaphosa is scheduled to discuss the Starlink issue with U.S. President Trump on Wednesday, highlighting its significance [2]. A "last-minute" meeting between South African officials and Elon Musk's team is planned for Tuesday night during Ramaphosa's visit to the U.S. [3]. This meeting could potentially lead to a resolution regarding Starlink's operation in South Africa.
The resolution of regulatory issues surrounding Starlink's operation in South Africa could have implications for foreign investment in the country, given the controversies surrounding BEE policies [1]. Furthermore, the Starlink issue's significance could potentially impact U.S.-South Africa relations, making this a topic of high importance for both parties.
References:
[1] "Starlink's South African launch: Everything you need to know", TechCentral, 2025-05-23. [Online]. Available: https://www.techcentral.co.za/starlinks-south-african-launch-everything-you-need-to-know/
[2] "Ramaphosa to discuss Starlink with Trump", The Citizen, 2025-05-23. [Online]. Available: https://www.citizen.co.za/news/south-africa/23052025_ramaphosa-to-discuss-starlink-with-trump/
[3] "Last-minute meeting between SA officials and Musk's team planned", TimesLIVE, 2025-05-22. [Online]. Available: https://www.timeslive.co.za/business/2025-05-22-last-minute-meeting-between-sa-officials-and-musks-team-planned/
[4] "Government gazette: Starlink's proposed BEE workaround", BusinessTech, 2025-05-23. [Online]. Available: https://businesstech.co.za/news/tech/521724/government-gazette-starlinks-proposed-bee-workaround/
[5] "Elon Musk claims Starlink blocked in South Africa due to BEE rules", MyBroadband, 2022-02-01. [Online]. Available: https://mybroadband.co.za/news/tech/460249-elon-musk-claims-starlink-blocked-in-south-africa-due-to-bee-rules.html
- The potential relaxation of Black Economic Empowerment (BEE) requirements for Starlink could influence not only the technology sector but also general-news discussions, as it may indicate a shift in business policies that could impact foreign investment in South Africa.
- The proposed change in BEE requirements for Starlink could have significant implications for the politics of South Africa, as it could lead to legal action from parties like the EFF if it is seen as undermining empowerment laws, and potential tensions in U.S.-South Africa relations, given the significance of the Starlink issue for both nations.
